Wednesday, 13 October,
SteelMint Exclusive
Domestic iron ore prices might fall if demand remains weak for next few days said Industry experts. Iron ore prices have gained about 100% in the last two months. Presently, high grade iron ore has been quoted at Rs 7,250/MT by major mines based in Orissa.
Steel markets are weak since last week. Prices have corrected about Rs 1,500/MT on finished products all across the country, which had rallied earlier in the month after steel majors increased their product prices looking at improvement in demand and expensive raw materials.
At these levels iron ore is too expensive for sponge manufacturers, looking at falling scrap prices abroad and poor demand industry experts feel that if the demand remains poor for next few days, iron ore prices minght see a correction.
“At present, queries have come down; this might be due to poor demand of sponge which has also resulted in its prices coming down”, said one of the mines marketing manager based in Orissa.
International Scenario
International Scrap prices have seen a correction recently. HMS-1 CFR turkey has come down to $365-$375/MT from $380/MT levels quoted a trader based in Turkey.
Experts also feel that rupee appreciation will make scrap cheaper than local sponge iron. Rupee has appreciated by about Rs 2 against the dollar in last few weeks. This appreciation will make scrap import cheaper by about Rs 700-800/MT. So, major mandis like Mandi Gobindgarh, Chennai, Mumbai, and Gujarat will ideally prefer scrap over sponge iron.
Experts remain cautious on iron ore prices till Indian steel market witnesses some fresh buying and improved demand chips in.
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